THE PAST YEAR WASN’T A GREAT ONE FOR dividends, but in the end, it wasn’t horrible, either. Early on, when the pandemic shut down the economy and uncertainty reigned, a slew of companies suspended or trimmed their dividends. So far this year, 42 firms in the S&P 500 index have suspended dividends and 25 have trimmed payouts.
As the economy reopened, albeit in fits and starts, some companies reinstated their dividends—either in part or level with previous payout amounts—including Foot Locker and La-Z-Boy. “I’m not losing sleep about something terrible happening to dividends,” says John Buckingham, editor of the investment newsletter The Prudent Speculator. In fact, Buckingham predicts that the total dividend payout in 2020 for the S&P 500 will come in at $58.78, slightly ahead of the benchmark’s payout of $58.69 in 2019. “We just went through Armageddon, and for the S&P 500, there was no reduction in dividends,” Buckingham says.
Not one of the Kiplinger Dividend 15, our favorite dividend stocks, suspended or cut its payout this year, though the pandemic posed challenges for some of the firms. In fact, nearly all of our companies increased their payouts over the past 12 months. And, as a group, the Dividend 15 stocks yield an average of 3.4%—roughly double the yield of the S&P 500.
On a total-return basis, however, the stocks were a mixed bag. Over the past 12 months, the Dividend 15 returned 13.5%, on average, compared with a 21.4% gain in the S&P 500. Air Products & Chemicals, Home Depot, and AbbVie, among others, beat the broad market. Enterprise Products Partners and Realty Income were major drags.
Esta historia es de la edición December 2020 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 2020 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
A SOLID YEAR FOR THE KIPLINGER 25
All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.
YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”